AmCham: "Yellow Envelope Act Causes Uncertainty... Concerns Over Weakened Korea's Global Competitiveness"

Six Major Economic Organizations Joint Statement Urging "Legislative Suspension"

The American Chamber of Commerce in Korea (AMCHAM) expressed deep concern on the 25th over the passage of the amendment to the Labor Union Act, commonly known as the 'Yellow Envelope Act,' by the National Assembly's Environment and Labor Committee.

James Kim, Chairman and CEO of AmCham
Photo by Yonhap News

AMCHAM stated, "Implementing a bill that limits the right to claim damages for illegal strikes could lead to unintended consequences, such as promoting collective actions that hinder industrial activities," expressing worries about the negative impact the bill could have on the business environment in Korea. "This bill could run counter to a stable and predictable business environment and ultimately reduce Korea's attractiveness as an investment destination," it added. "It poses a significant risk of creating uncertainty, decreasing investment, and weakening Korea's global competitiveness."

Earlier, domestic economic organizations including the Korea Chamber of Commerce and Industry, the Korea Employers Federation, the Federation of Korean Industries, the Korea International Trade Association, the Korea Federation of Small and Medium Business, and the Korea Federation of Medium-sized Enterprises issued a joint statement urging the suspension of the bill's legislation.

James Kim, Chairman and CEO of AMCHAM, said, "We fully support the position expressed by the six domestic economic organizations in their joint statement," and added, "AMCHAM respectfully requests the National Assembly to reconsider the amendment and urges the pursuit of a more balanced and fair approach that protects the rights of both workers and management."

This content was produced with the assistance of AI translation services.